Stock Prices Prediction using the Title of Newspaper Articles with Korean Natural Language Processing

Abstract

Non-quantitative data have a significant impact on the financial market as well as quantitative data. In this paper, we propose CNN model of stock price prediction using Korean natural language processing. In the case of Korean natural language processing research was not actively performed compared to English language. We converted Korean sentences into nouns and vectorized them using skip-grams to extract the characteristics of the words. Then, the vectorized word sentence was used as input data of the CNN model to predict the stock price after 5 days of trading day. Most models have more than 50% prediction accuracy for stock price up and down. The highest accuracy of the model was about 53%. Since the result is not considerable but meaningful, it shows the possibility of developing the stock price prediction model through Korean natural language processing in the future.